What is the tax status of Fixed Income securities?

[dropcap style=”light”]Q.[/dropcap] I’m confused about how the taxable flag should be set for the various fixed income securities.  Everything seems to come in marked as taxable. Can you help?

[dropcap style=”light”]A. [/dropcap]For most brokers new fixed income securities default to state taxable “yes” and federal taxable “yes.”  For the most part this information must be manually changed and updated.

The quickest way to review and update your taxable flags is to use the Securities Data Manager.

[table]

Security Type	State Taxable	Federal Taxable
Municipal	No	No
Corporate	Yes	Yes
Fed Home Loan	No	Yes
US Treasuries	No	Yes
CTF	No	Yes
Fing	Yes	Yes
CATS	Yes	Yes

[/table]